NEW YORK–(COMMERCIAL LINE). – parametric flood insurance program. This is the first nationwide parametric flood program with local payments and will provide coverage to smallholder farmers across Colombia. Based on C2S’s industry-leading flood intelligence, the collaboration marks the first major success of a parametric flood program created for climate adaptation and intended to close a persistent global coverage gap.
“Global floods threaten billions of people and remain the most common and costly natural hazard,” says Peter Lacovara, parametric insurance expert and business manager at C2S. “The worsening of climate change underlines the need to prioritize climate adaptation and financial solutions to support people affected by natural disasters. We couldn’t be more proud to help make insurance protection available to over 100,000 Colombian farmers for the first time, and we’re ready to assist in the creation of similar parametric flood insurance programs around the world. ”
Parametric insurance is an alternative approach to insurance policy design and claims payment that is gaining popularity as climate change increases risks across geographies. Parametric insurance policies insure an insured against the occurrence of a specific event by paying an amount determined based on the extent of the event rather than the physical damage suffered. Under the new program in Colombia, insured farmers will receive a loan relief based on the extent of the floods hindering their ability to grow their crops and bring them to market. Parametric insurance allows coverage of previously uninsurable risks and frictionless payment of claims, largely due to the fact that they do not require physical damage inspection by an appraiser to trigger a payment. As a nationwide parametric flood program, farmers in even the most remote parts of Colombia will now receive immediate financial help following a flood.
Cloud to Street combines multiple flood data streams, including optical and radar satellites, historical flood maps and field intelligence, with machine learning to provide vital, actionable information about the magnitude and impact of ongoing flood events . The company provides insurers and disaster risk holders with previously inaccessible data to secure new markets, respond to emergencies and plan for future flood risk. Insurance companies use C2S data to better understand and underwrite flood risk and monitor and react to flood events as they evolve. For the Colombia program, Cloud to Street data enabled partners to set specific flood risk metrics that made it possible to create fair and comprehensive parametric policies. Using data from C2S, Raincoat was able to provide a product and platform that allows insured farmers to pay within days of a disaster, without them having to file a claim.
About Cloud to Street: Cloud to Street (C2S) is a climate adaptation technology company that provides accurate, near real-time data and analysis on flooding and flood risk. Based on 15 satellites, machine learning and field data, C2S technology provides better data to insurance companies and governments to inform about better flood preparedness and recovery decisions. Led by top scientists in the fields of hydrology and spatial analysis, C2S offers access to the most affordable and actionable flood information on the market. C2S’s unique combination of satellite imagery, historical data and models can produce accurate forecasts of flood locations and severity to provide life-changing insurance products for the previously uninsured, as well as near-real-time measurements of flood events for inform the parametric payments policy. Cloud to Street is backed by Lowercarbon Capital and Collaborative Fund and most recently his work appeared on the cover of Nature magazine.
About the raincoat: Raincoat develops highly scalable integrated climate insurance products in partnership with insurers, financial institutions and governments. Raincoat aims to democratize financial resilience in the face of natural disasters. For more information visit: https://www.getraincoat.com